Chrysler Group planning to produce 1.4-liter Fiat-based engines

Article by Christian Andrei, on August 26, 2010

Chrysler group remains undecided on where to produce 1.4-liter Fiat-based engines. There are two viable options--its unused plant in Dundee, Mich., or in Saltillo, Mexico.

With the Michigan state board's act to sweeten the Dundee deal with tax credits, it may be that the tide is turning in their favor.

Chrysler spokesman Max Gates in an email said that the Michigan Economic Growth Authority Board had voted to give employment tax credits for 10 years on new Chrysler workers tasked to make the engines.

Chrysler says however that the state board's decision is only one aspect that the carmaker is considering. In a statement, Chrysler said that several steps remain in the process.

Chrysler added that it looks forward to working with state and local officials for this project to be successful. Chrysler owns two plants in Dundee.

While one facility employs 207 people to make 1.8- to 2.4-liter four-cylinder engines, the other site has been idle since 2007.

Technology from Fiat S.p.A., Chrysler's Italian automaker partner, is used for the engines. Chrysler is determined to borrow Fiat's technology to reduce its fleetwide emissions by 25% by 2014.

Topics: chrysler, fiat, engine

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